Choice between FSCS and LCCS - Relative Importance of Corporate and Government Initiatives

Abstract

With a modest start in 2003, Low-Cost Carriers (LCCs) have become a dominant player and the most preferred mode of air transport in India. As per the latest reports, the market share of LCCs had touched 82% during FY 2022. This type of progress could not have been achieved without proactive initiatives taken by both the Airline Management and the Government of India. This article tries to analyze various initiatives taken up at the corporate level and at the Government level to make air travel accessible and affordable to the general public. Five attributes under corporate initiatives and four attributes under government initiatives have been identified and analyzed through a survey collected from 300 passengers from Bengaluru, India. The data is analyzed using Analytic Hierarchy Process (AHP). The results show that the UDAN scheme – an initiative of the Government of India (GOI) is the most important attribute that passengers consider when choosing an air carrier. This is followed by Brand Image, Safety/ Reliability. Two more initiatives of the GOI namely De-regulation policies and Tariff Structure are the next two important attributes followed by Airfare. Advertising and Promotion, Infrastructure Development, and Frequent Flyer Program (FFP) are the least important attributes.